Stock Market Cools After Big Week; This Growth Index Outperforms Market

The stock market quickly wiped away opening gains and was lower after a half-hour of trading Monday. But the IBD 50 index outperformed.




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The Nasdaq fell 0.5%, the S&P 500 lost 0.3% and the Dow Jones Industrial Average was off 0.2%. Indexes are pausing after strong gains Thursday and Friday. Indexes have made a solid bounce off the mid-June lows.

Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Friday. Trading soared late Friday on the rebalancing of the Russell indexes.

Dow component Nike (NKE) fell 1.7% ahead of its earnings report after the close. The stock has been trending lower for months. Some analysts have cut their price targets on Nike, which just announced it is exiting Russia.

In other Dow stocks, Microsoft (MSFT) is hitting some resistance at the 21-day exponential moving average. Shares fell 0.8%.

US Stock Market Today Overview

Index Symbol Price Gain / Loss % Change
Dow Jones (0DJIA) 31460.61 -40.07 -0.13
S&P 500 (0S & P5) 3904.82 -6.92 -0.18
Nasdaq (0NDQC) 11560.39 -47.23 -0.41
Russell 2000 (IWM) 175.40 +0.31 +0.18
IBD 50 (FFTY) 27.25 +0.15 +0.55
Last Update: 10:08 PM ET 6/27/2022

The energy sector was almost the only S&P sector up on the day. Energy Select Sector SPDR (XLE) climbed 1.5% as it attempts to break a two-week slide. The price of US crude oil eased less than 1% to $ 106.74 a barrel.

IBD 50 Outperforms Stock Market

Innovator IBD 50 ETF rose 0.5%, outperforming the broad market thanks to strength is some health care and consumer stocks.

Merck (MRK) climbed nearly 2% and topped the 95.02 buy point of a U-shaped base. The pharmaceutical stock climbed the past four sessions in a rapid climb toward new highs. Eli Lilly (LLY) climbed to a new high.

Li Auto (LI), which has been on a tear for weeks, fell 4.5% in heavy trading. The stock appears ready for a pause.

Outside the IBD 50, Digital World Acquisition (DWAC) sold off nearly 9%, dropping to the lowest since April 21. The company, which plans to take public former President Donald Trump’s social media company, said in a filing that a federal grand jury subpoenaed all its board members.

The subpoenas are part of a federal investigation into the deal, and can be expected to delay the company’s plans for the IPO of Truth Social, the filing added.

Stock Market Eyes Economic Data

Orders for durable goods rose more than expected in May, up 0.7% from 0.4% the previous month. Economists polled by Econoday expected a 0.1% increase. Excluding transportation items, orders climbed 0.7% also.

Priscilla Thiagamoorthy, economist at BMO Capital Markets, said the report showed good gains in most categories.

“We would point out that the report is extremely volatile and a number of regional Fed surveys (including the Philly Fed Index) pointed to slowing momentum,” she said in an analysis. “Still, the better-than-expected figure suggests that, despite tightening financial conditions and rising risks of an economic downturn, demand for equipment and long-lived merchandise remains healthy… For now.”

The yield on the 10-year Treasury note rose 4 basis points to 3.17%.

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